SBI Car Loan: State Bank of India Car Loans offer low interest rates, Processing Fee, easy repayment options, total transparency, no processing charges, finance to include vehicle registration charges, insurance and one time road tax. In case of new cars, loan is provided on any make or model. In case of old cars too, the loan is provided on any make or model, but the vehicle should not be more than 5 years old.
- lowest interest rates on vehicles loans.
- Longer repayment period of up to 84 months.
- No hidden costs or administrative charges.
- Finance for one-time road tax, registration fee, insurance premium and accessories
- No advance EMIs. (Some Banks/companies ask you to pay one or more EMIs at the time of disbursement of loan, thereby effectively reducing your loan amount.)
SBI Car Loan Interest Rates
- 8.70% – 8.75% for New cars / NRI Car Loans
Eligibility for SBI Car Loan:
- Individual between the age of 21-65 years of age.
- a) For Central Government, Central Public Sector Undertakings, Defence/ Paramilitary Forces and Railway Employees who have salary package accounts with SBI and minimum 3 months salary have regularly come in these accounts: Gross Annual Income of applicant and/or co-applicant if any, together should be Rs. 4,00,000/- p.a. and above.
- b) For Salaried customers other than above mentioned Categories: Gross Annual Income of applicant and/or co-applicant if any, together should be Rs. 6,00,000/- p.a. and above.
- Self employed, professionals and Proprietary/Partnership Firms: Net Profit or Gross Taxable income of Rs. 6,00,000/- p.a. as per ITR after adding back depreciation and repayment of all existing loans.
- Agriculturist: Gross Annual Income of Rs 6,00,000 and above.
- No ceiling on the loan amount for new cars.
- Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.
- Statement of Bank account of the borrower for last 12 months.
- 2 passport size photographs of borrower(s).
- Signature identification from bankers of borrower(s).
- A copy of passport /voters ID card/PAN card.
- Proof of residence.
- Latest salary-slip showing all deductions
- I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/self-employed/businessmen duly accepted by the ITO wherever applicable to be submitted.
- Proof of official address for non-salaried individuals.
Complete transparency: SBI levy interest on daily reducing balance method. When you pay one installment, the interest is automatically calculated on the reduced balance thereafter. When you pay interest on an annual reducing balance, as charged by many other companies/banks, the interest amount for the coming year is determined on the amount outstanding at the beginning of the year. You continue to pay interest even on the amounts you repay during the year.
There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the net annual income can be sanctioned. If married, your spouse’s income could also be considered provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for one-time road tax, registration plus insurance.
Type of Loan
1. Term Loan
2. Overdraft – a) For New vehicles only
b) Minimum loan amount: Rs. 3 lacs.
You would need to submit the following documents along with the completed application form if you are an existing SBI account holder:
If you are not an account holder with SBI you would also need to furnish documents that establish your identity and give proof of residence.
SBI offers the longest repayment period in the industry.
For Salaried: Maximum of 84 months
For Self-employed & Professionals: Maximum 60 months
Repayment period for used vehicles: Up to 84 months from the date of original purchase of the vehicle (subject to maximum tenure as above).
Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions.
Processing Fee: 0.51% of the loan amount subject to minimum of Rs. 1020/- and maximum of Rs. 10200/-
Other Products from SBI:
Source: State Bank of India Website